Australian bitcoin miner Bitcoin Group has released another prospectus, now filed with the Australian Securities and Investments Commission (ASIC), a stir that also eyed the company postpone its initial public suggesting on the Australian Securities Exchange (ASX).
Cryptocurrency miner Bitcoin Group has released yet another prospectus while delaying its listing on the ASX to address concerns waterput forward by the ASIC. The company wasgoed asked by the commission to appoint an “appropriately qualified independent expert” to explain the bitcoin mining process involved ter mining the cryptocurrency. The experienced wasgoed also requested to verify the bitcoin mining equation present te the Australian miner’s earlier prospectus to assess the feasibility of the operation.
The company has faced frequent delays ter its quest to be the world’s very first publically floated Bitcoin startup. A vooraanstaand incident included a retraction by the company against any suggestions that Australian Prime Minister Malcolm Turnbull wasgoed a shareholder.
The 2nd replacement prospectus can be viewed here. [Google Drive PDF]
The Latest Bitcoin Group Prospectus
The Melbourne-based miner has exposed that it is seeking to raise $20 million through 100,000,000 fresh shares at an suggest price of $0.20 vanaf share.
The miner also notes that 90% of the capital raised will go directly into expanding its mining operation spil well spil meeting the costs of its existing operations. The remaining 10%, according to the prospectus will be used towards all expenses outside operations including employment, marketing costs and more.
The prospectus also contains a 7-page report required by the ASIC from an independent pro, Professor Peter Taylor at the University of Melbourne at its Schoolgebouw of Mathematics and Statistics. The report provides an overview of the Bitcoin mining process and the business of the mining industry.
Since Bitcoin Mining Group is a mining-only Bitcoin-based startup, the ASIC required an independent experienced to report on matters of “how the Bitcoin Industry operates, the variables underpinning the Bitcoin Mining Equation and its influence on BCG (Bitcoin Group) and information setting out future voorstelling of BCG.” The terms were exposed ter the company’s 2nd supplementary prospectus, which coincided with the company delaying its IPO to schedule it on January 20, 2016.
To overcome thesis concerns, the BCG notes that it has joined a mining pool wherein the collective operation of a number of miners and an enlargened hash power also increases the chance of mining a block. The prospectus further exposed that all of BCG’s mining activities to date have only bot conducted through participation ter mining pools, “because at only 1% of the Network Hash Rate, standalone Mining would be too volatile.”
Ter his report, Professor Taylor confirms the probability of an enhanced yield of bitcoins mined while te a collective mining pool spil opposed to going at “it alone.”
Demonstrating calculations exposed te the prospectus, Professor Taylor notes:
Consider, for example, a miner with 0.5% of worldwide computing power…we can see that such a miner will, on average mine 131.76 blocks ter a 183-day period.
Also, if it [the mining entity] participated te a pool with 5% of worldwide computing power and received 10% of the pool’s earnings then, with probability 0.9993…number of bitcoins generated from mining [would be] inbetween 120.1 and 145 blocks.
On the other mitt, if the mining entity determined to go it [sic] alone, the average number of blocks is the same but the actual number is more variable. Indeed, there is a 0.9991 probability that the number of blocks mined will lie anywhere inbetween 96 and 170.
The latest prospectus, filed on December 24, 2015 has a fresh timetable for the IPO. The opoffering closes on January 25, 2016, the expected kwestie and allotment of shares on January 27, 2016 and the expected dispatch of holding statements on January 28, 2016. The expected listing on the ASX has now bot postponed to February Two, 2016.
Spil it so happens, the ASX is also keen on bitcoin’s underlying technology – the blockchain. Australia’s thickest stock exchange is due to take a decision to overhaul its current clearing and settlement system te mid-2016 and ASX CEO Elmer Funke Kupper recently claimed that the company is taking a “very close look” at blockchain technology.